Indian ultra-wealthy pour 32% of funds into residential real estate

Riches in residences: Ultra-high-net-worth individuals (UHNWIs) in India are allocating their wealth towards residential assets, with 32 per cent of their fortunes directed into this real estate class, according to the Knight Frank report 2024. This report also reveals that approximately 14 per cent of their residential holdings are located outside India. Moreover, a notable 12 per cent of Indian UHNWIs are looking to purchase new homes in 2024, consistent with trends observed in the previous year.

Affluent real estate preferences

Globally, the report indicates a continued interest in residential real estate amongst the ultra-wealthy, with 22 per cent of them expected to invest in properties this year. Liam Bailey, Knight Frank's global head of research, highlights the enduring appeal of real estate investments amongst the affluent. He highlights that nearly a fifth of UHNWIs globally plan to invest in commercial real estate in 2024, with over a fifth intending to buy residential properties.

Insights from an attitude survey conducted by Knight Frank also shed light on the evolving preferences of UHNWIs, both in India and globally. In India, 23 per cent of respondents expressed a preference for sustainable investments, particularly in commercial properties. This sentiment is echoed on a global scale, where 29 per cent prioritise sustainable assets due to their perceived lower risk profile.

Responsible investment shift

Shishir Baijal, Chairperson and Managing Director, Knight Frank India, highlights the continued popularity of prime residential assets amongst India's ultra-wealthy. He also points out a notable shift towards environmentally and socially responsible investments in commercial real estate. Baijal predicts that sustainable real estate assets will gain even more prominence amongst family offices and affluent individuals in 2024.

Overall, the report paints a picture of UHNWIs increasingly diversifying their portfolios with a focus on residential real estate, while also showing a growing interest in sustainable investment choices both in India and globally.